Magellan Midstream Increases Quarterly Cash Distribution to 53.25 Cents,
Raises Annual Distribution Growth Targets to 16% for 2013 and 15% for 2014
TULSA, Okla., July 25, 2013
TULSA, Okla., July 25, 2013 /PRNewswire/ -- The board of directors of Magellan
Midstream Partners, L.P. (NYSE: MMP) has increased the partnership's quarterly
cash distribution to 53.25 cents per unit for the period April 1 through June
30, 2013, representing the 45^th distribution increase since its initial
public offering in 2001.
The second-quarter 2013 distribution is 13% higher than the second-quarter
2012 distribution of 47.125 cents per unit and represents a 5% increase over
the first-quarter 2013 distribution of 50.75 cents.
The new distribution, which equates to $2.13 per unit on an annualized basis,
will be paid Aug. 14 to unitholders of record at the close of business on Aug.
"Magellan's operations continue to generate strong results and our growth
projects remain on track," said Michael Mears, chief executive officer. "As a
result, we are pleased to raise our annual distribution growth targets to 16%
for 2013 and 15% for 2014, reflecting our confidence in Magellan's future."
Previously, Magellan's distribution guidance had been at least 10% annual
growth for 2013 and 2014.
This announcement is intended to be a qualified notice to nominees under
Treasury Regulation Section 1.1446-4(b), with 100% of the partnership's
distributions to foreign investors attributable to income that is effectively
connected with a United States trade or business. Accordingly, the
partnership's distributions to foreign investors are subject to federal income
tax withholding at the highest effective tax rate.
About Magellan Midstream Partners, L.P.
Magellan Midstream Partners, L.P. (NYSE: MMP) is a publicly traded partnership
that primarily transports, stores and distributes refined petroleum products
and crude oil. The partnership owns the longest refined petroleum products
pipeline system in the country, with access to more than 40% of the nation's
refining capacity, and can store over 80 million barrels of petroleum products
such as gasoline, diesel fuel and crude oil. More information is available at
Forward-Looking Statement Disclaimer
Portions of this document constitute forward-looking statements as defined by
federal law. Although management believes any such statements are based on
reasonable assumptions, there is no assurance that actual outcomes will not be
materially different. Among the key risk factors that may have a direct impact
on the partnership's results of operations and financial condition are: (1)
its ability to identify growth projects or to complete identified projects on
time and at expected costs; (2) price fluctuations and changes in demand for
refined petroleum products, crude oil and natural gas liquids, or changes in
demand for transportation or storage of those commodities through its existing
or planned facilities; (3) changes in the partnership's tariff rates or other
terms imposed by state or federal regulatory agencies; (4) shut-downs or
cutbacks at major refineries or other businesses that use or supply the
partnership's services; (5) changes in the throughput or interruption in
service on pipelines owned and operated by third parties and connected to the
partnership's terminals or pipelines; (6) the occurrence of an operational
hazard or unforeseen interruption for which the partnership is not adequately
insured; (7) the treatment of the partnership as a corporation for federal or
state income tax purposes or if the partnership becomes subject to significant
forms of other taxation; (8) an increase in the competition the partnership's
operations encounter; (9) disruption in the debt and equity markets that
negatively impacts the partnership's ability to finance its capital spending;
and (10) failure of customers to meet or continue contractual obligations to
the partnership. Additional information about issues that could lead to
material changes in performance is contained in the partnership's filings with
the Securities and Exchange Commission, including the partnership's Annual
Report on Form 10-K for the fiscal year ended Dec. 31, 2012 and subsequent
reports on Forms 10-Q and 8-K. The partnership undertakes no obligation to
revise its forward-looking statements to reflect events or circumstances
occurring after today's date.
Contact: Paula Farrell
SOURCE Magellan Midstream Partners, L.P.
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